bumidan on 01 August 2008
SUMMARY:
Given the projected results, MSFT selling 25 million XBox 360s will basically be 50% - 75% bigger than Nintendo - if you strip out the DS.
Handhelds account for about 50% (give or take a few points less) of Nintendo's revenue and profits.
CONCLUSION:
While Nintendo is VERY PROFITABLE, it is a function of sales volumes that make them very much so (duh....)
For the same sales volumes, the XBox Platform MAY be slightly more profitable than the Wii.
This makes some sense, because the software attach rate for the X360 is a bit higher, as well as XBox Live generating revenues and profits for subscriptions and downloads.
Enjoy and discuss....
